HAPPY SCOTTISH RESIDENTS HAVE HIGHEST AMOUNTS OF SPARE CASH IN UK

13th August 2015

The average monthly spare cash for households in Scotland is £454, far higher than the UK average of £381.

With an average monthly income of £1,989, people in Scotland have 23% (or £454) left as spare cash each month - the highest in the UK, ahead of Wales (£415) and 10% more than those living in the East Midlands, the highest in England, who have 22% or £395 spare cash left each month.

The study reveals a direct correlation between happiness, and the amount of spare cash someone has.

Those in Scotland are some of the happiest people in the UK when it comes to finances.

For more detail, and to see how Scotland fairs against other regions, visit- https://www.sunlifedirect.co.uk/cash-happy/

To be one of the UK's happiest people you need £71.54 a week in spare cash
How much spare cash you have really affects how happy you are, finds SunLife Cash Happystudy
Average person in UK has £166 a month (£38.19 a week) spare cash
The happiest 10% have at least £310 a month (£71.54 a week) spare cash
On average, just £1 of every £5 we earn is ‘spare cash'

New research from financial planning company SunLife reveals that money does make you happy. At least, having some spare cash each month to spend however you wish does.

SunLife's extensive Cash Happy study interviewed over 3,000 UK adults and found a correlation between spare cash and happiness1. ‘Spare cash’ is the money we have to spend however we want each month, after our regular outgoings on household bills, food, fuel, fees and so on are paid for.

The Cash Happy study found that the average monthly household income in the UK is £1,970. Out of this comes rent (average of £433) or mortgage (average of £450), loans (average of £250) or credit card payments (average of £120) and other regular monthly payments. Then there are all our other monthly costs such as transport, clothing and food - at the end of which, the average spare cash per is £381 a month per household. Per UK adult2, that becomes £166 a month, or £38.19 a week.

Which means that on average, 81% of the money we earn is already earmarked for our regular outgoings - leaving just one pound in every five we earn as ‘spare cash’ to spend however we want. To put it another way, if you work five days a week, then the money you earn from Monday to Thursday is already earmarked for your regular outgoings.

The price of happiness

So, just how much spare cash makes us happy? SunLife’s research found that - after a number of other factors that influence happiness are removed – to be among the happiest 10% in the UK someone needs £310 spare cash each month, equivalent to £71.54 a week.

Dean Lamble, SunLife’s managing director commented: "Our research shows that having spare cash – money that you haven’t already got earmarked – is really important for happiness. Perhaps the bigger story here is that it shows how beneficial it can be to budget, to try and give ourselves a bit left over at the end of every month. It also shows that financial happiness could be more attainable for many people than they might think, with the average person needing to find an extra £33 a week – less than £5 a day – in spare cash to be among the happiest in the UK."

Where to find happiness
SunLife’s Cash Happy survey also discovered that although incomes are highest in London and the South East, outgoings are higher too, so they have less spare cash. In fact, Londoners have an average of just 17% of their income as spare cash, below the national average of 19% and well below that of the happiest people – the Scots – whose spare cash accounts for almost a quarter (23%) of their income.

Meanwhile, the least happy were people in the East Midlands who also have one of the lowest levels of spare cash in the country.

Perhaps unsurprisingly, ‘Keeping up with the Jones’’ seemed important too: regardless of region, those who thought they had more spare cash than their peers were happier than those who believed they had less.

Spend yourself happy

As well as having spare cash, SunLife’s Cash Happy report also found that how we spend our money can make us happier too – and it’s not about simply ‘buying more stuff’.

For example, those with insurance and pensions are much happier than those without, even if this means they have less money left over as a result. Those with a private pension were happier than people who just had a pension provided by their employer. Saving had a significant effect too; putting some money aside for a rainy day contributed to people’s overall happiness.

Dean Lamble, managing director at SunLife concludes: "The good news is out: you don’t need to be a millionaire for money to buy you happiness. Our research shows how we can all benefit from budgeting to have more spare cash and so be happier. In fact, our Cash Happy report shows that the happiest people in the UK also formally budget, and check their bank balance regularly.

"It also emphasises the emotional value of having insurance and of long-term saving – whether that’s in a pension or other savings – and of having insurance in place. That’s why we launched an investment – a stocks and shares ISA – that enables people to invest from as little as £10 a month with the potential to see it grow over time and a 10 year money-back guarantee built-in."